What Is GDP?
Gross domestic product (GDP) is the market value of all final goods and services produced within a country in a period, usually a year. It counts what is produced inside the country’s borders, by residents and foreign-owned firms alike, and each product once: intermediate goods used up in production are not counted again.
The 189 economies with a 2026 IMF figure (a projection) have combined GDP of $126.88 trillion, a SOTW sum of country figures rather than an official world aggregate. The three largest, United States ($32.64 trillion), China ($21.55 trillion) and Germany ($5.47 trillion), account for 47.0% of it.
How GDP is measured
Statistical offices measure GDP three ways, which in principle give the same total:
- Production: the value each industry adds, its output minus the goods and services it used up.
- Spending: what is bought for final use, by households, government, businesses investing and buyers abroad, minus imports.
- Income: wages, profits and other incomes earned in producing it, plus taxes on production less subsidies.
The GDP formula: C + I + G + (X minus M)
On the spending side, GDP is household consumption (C), plus investment (I), plus government consumption (G), plus exports (X) minus imports (M). The table shows each part as a share of GDP in the ten largest economies. Household consumption is the largest part of GDP in 9 of the 10 largest economies with a figure. Of the 10 with a trade figure, five import more than they export, so net exports subtract from their GDP.
| Economy | Households (C) | Investment (I) | Government (G) | Net exports (X minus M) | Year |
|---|---|---|---|---|---|
| United States | 67.9% | 21.5% | 13.6% | -3.1% | 2024 |
| China | 40.0% | 40.5% | 16.7% | 4.2% | 2024, 2025 |
| Germany | 53.2% | 21.9% | 22.5% | 2.4% | 2025 |
| Japan | 53.1% | 27.7% | 20.1% | -0.9% | 2024 |
| United Kingdom | 60.4% | 19.7% | 21.2% | -1.3% | 2025 |
| India | 56.7% | 34.6% | 10.8% | -1.7% | 2025 |
| France | 54.1% | 21.9% | 24.4% | -0.4% | 2025 |
| Russia | 51.3% | 25.9% | 19.1% | 2.7% | 2025 |
| Italy | 57.6% | 22.2% | 18.3% | 1.9% | 2025 |
| Brazil | 63.4% | 17.1% | 19.1% | 0.3% | 2025 |
Source: World Bank, World Development Indicators (national accounts).
By production: agriculture, industry and services
Services are the largest sector in all ten of the largest economies with a figure. The shares do not add up to 100% because taxes on products less subsidies are part of GDP but not of any sector.
| Economy | Agriculture | Industry | Services | Year |
|---|---|---|---|---|
| United States | 0.9% | 17.6% | 76.3% | 2021 |
| China | 6.7% | 35.6% | 57.7% | 2025 |
| Germany | 0.9% | 25.2% | 64.5% | 2025 |
| Japan | 1.0% | 26.8% | 71.4% | 2024 |
| United Kingdom | 0.6% | 16.5% | 73.1% | 2025 |
| India | 16.2% | 25.2% | 49.3% | 2025 |
| France | 1.4% | 16.8% | 70.9% | 2025 |
| Russia | 3.1% | 29.7% | 58.9% | 2025 |
| Italy | 2.1% | 22.6% | 64.5% | 2025 |
| Brazil | 6.1% | 20.1% | 59.7% | 2025 |
Source: World Bank, World Development Indicators. Value added as % of GDP. Every country.
The largest economies by GDP
The United States alone accounts for 25.7% of the combined GDP of the 189 economies, and the ten largest for 66.3%. GDP measures the size of an economy, not how well off its people are; for that, see GDP per capita.
| # | Economy | GDP (US$) | Share | Real growth |
|---|---|---|---|---|
| 1 | United States | $32.64T | 25.7% | 2.3% |
| 2 | China | $21.55T | 17.0% | 4.5% |
| 3 | Germany | $5.47T | 4.3% | 1.3% |
| 4 | Japan | $4.34T | 3.4% | 0.7% |
| 5 | United Kingdom | $4.27T | 3.4% | 1.3% |
| 6 | India | $4.06T | 3.2% | 7.0% |
| 7 | France | $3.55T | 2.8% | 0.4% |
| 8 | Russia | $2.86T | 2.3% | 0.9% |
| 9 | Italy | $2.70T | 2.1% | 0.8% |
| 10 | Brazil | $2.65T | 2.1% | 2.2% |
Source: IMF World Economic Outlook. Current US dollars at market exchange rates. Current-year figures are IMF projections. GDP of every country.
Nominal GDP, real GDP and GDP at PPP
Nominal GDP uses each year's own prices, so it rises with inflation. Real GDP uses the prices of a base year, so its change measures how much more was produced; that is the GDP growth rate. GDP at purchasing power parity converts each country's GDP with exchange rates that equalize what money buys, which raises the GDP of countries where prices are low. At purchasing power parity China ranks first, with 19.9% of world GDP at PPP in the IMF's estimate, against second place at market exchange rates. Each of the ten largest economies at PPP holds a different place at market exchange rates.
| PPP rank | Economy | GDP at PPP | Share of world (PPP) | Nominal rank |
|---|---|---|---|---|
| 1 | China | $44.55T | 19.9% | 2 |
| 2 | United States | $32.64T | 14.6% | 1 |
| 3 | India | $19.19T | 8.6% | 6 |
| 4 | Russia | $7.54T | 3.4% | 8 |
| 5 | Japan | $7.32T | 3.3% | 4 |
| 6 | Germany | $6.55T | 2.9% | 3 |
| 7 | Indonesia | $5.48T | 2.4% | 17 |
| 8 | Brazil | $5.27T | 2.3% | 10 |
| 9 | United Kingdom | $4.78T | 2.1% | 5 |
| 10 | France | $4.76T | 2.1% | 7 |
Source: IMF World Economic Outlook. International dollars. GDP at PPP for every country.
GDP and GNI
Gross national income (GNI) is GDP plus the income residents earn abroad, minus the income paid to people and companies abroad. Where foreign-owned firms earn large profits, GDP is well above the income that stays in the country. Among economies with GDP of at least $50 billion, Puerto Rico, Luxembourg and Ireland have the lowest gross national income relative to GDP: Puerto Rico's GNI is 67.7% of its GDP (2025). Profits of foreign-owned companies counted in their GDP are paid out abroad.
| Economy | GDP | GNI | GNI as % of GDP | Year |
|---|---|---|---|---|
| Puerto Rico | $129.37B | $87.57B | 67.7% | 2025 |
| Luxembourg | $101.16B | $68.91B | 68.1% | 2025 |
| Ireland | $721.70B | $494.71B | 68.5% | 2025 |
| Singapore | $603.87B | $501.84B | 83.1% | 2025 |
| Costa Rica | $102.90B | $93.62B | 91.0% | 2025 |
Source: World Bank, World Development Indicators. Current US dollars; GDP and GNI for the same year.
Questions about GDP
What is GDP in simple terms?
The value of everything an economy produces in a year for final use: what households and the government buy, what businesses invest, and what is sold abroad, less what is imported.
What is the formula for GDP?
On the spending side, GDP = C + I + G + (X minus M): household consumption, investment, government consumption, and exports minus imports. For United States the four parts are 67.9%, 21.5%, 13.6% and -3.1% of GDP (2024, World Bank).
Which countries have the largest GDP?
United States ($32.64 trillion), China ($21.55 trillion) and Germany ($5.47 trillion), on IMF figures for 2026 IMF projection. The full ranking is on the GDP by country page.
What is the difference between nominal and real GDP?
Nominal GDP is measured at the prices of the year itself, so it rises with inflation. Real GDP is measured at the prices of a base year, so its change shows how much more an economy produced. GDP growth rates are real.
What is GDP at purchasing power parity?
GDP converted at exchange rates that equalize what money buys in each country, instead of market exchange rates. It raises the GDP of countries where prices are low. At purchasing power parity China ranks first, with 19.9% of world GDP at PPP in the IMF's estimate, against second place at market exchange rates. Each of the ten largest economies at PPP holds a different place at market exchange rates.
Is GDP the same as GNI?
No. Gross national income adds income residents earn abroad and subtracts income paid to foreigners. Among economies with GDP of at least $50 billion, Puerto Rico, Luxembourg and Ireland have the lowest gross national income relative to GDP: Puerto Rico's GNI is 67.7% of its GDP (2025). Profits of foreign-owned companies counted in their GDP are paid out abroad.
What does GDP not measure?
It leaves out unpaid work at home, the depletion of natural resources and environmental damage, and it says nothing about how income is shared. GDP per person is an average, not what a typical person earns.